The Business of Social Media and Making the ROI

a. Let's suppose your current annual sales are $1 million. You implement social media strategy and begin generating $200,000 in revenue through your Facebook page. At the end your sales are still $1 million. Was your social media strategy successful?
Why or Why not?

b. Every social media strategy costs money to implement and there are a few of those costs listed in the case study. Identify few other costs that you think are associated with social media. Briefly describe them and classify them as fixed costs or variable costs.

c. Suppose you have a successful business with a well-liked product. One day something goes wrong and you ship 100,000 defective products. Almost the entirety of your customer base is disgruntled. What social media strategy would you employ to help? Why?

d. Would you be better off by just "waiting for it to get over" or "by sticking your head in the sand"? Why?